TIER 1:

Posted: 19/11/18

ASKING YOURSELF THE RIGHT QUESTIONS

05.

TIER ONE TRADER:

MAKE UP TO $2,000 (USD)

PER MONTH

Everybody has to start somewhere. You may spend a fortune of a set of golf clubs, but you don’t expect then to be able to play like Tiger Woods on your first round do you? Trading is no exception. You can’t just put money into account and expect it to make you rich.

$5,000 MIN (USD) DEPOSIT:

If you are new to trading or have just always wanted to try it then begin with this tier. Unfortunately, trading is not as simple as just using a demo account or paper trading to get an idea of what you can achieve. The missing element here is fear. By using ‘real money’ you get the ‘real’ emotion of what making and more importantly losing money does to your actual results.

Trading is also not an inexpensive undertaking. To trade and to make money you need capital. If you are looking to make a percentage return it is simple, just like investing in property. To get a 5% yield of $3000 p/a your capital outlay would be $60,000. In trading it is the same, if you want to make a certain return you have to have the capital available to invest.

Trading, and spread betting can lead people to have unrealistic expectations. Unlike ‘betting’ where you stake an amount to win amount, only risking your stake with trading you can lose more, much more than you initially put on.

For example if you put $10 on a horse at odds of 5/1 you expect to win $50 and if you are wrong you lose the $10 you staked.

In trading you stake $10 per pip. This means is the market moves 5 pips in your favour you make $50. However if the market goes 15 pips against you, you will lose a total of $150 not simply the $10 staked.

HELP IS AT HAND:

Firstly, you are not risking the whole $5000. This amount gives you the ability to take a number of positions over time. If you trade a $1 per pip in the markets you will need about $300 of capital to open this position. This means you have $4700 of capital remaining for other positions.

Your ability to make money will depend on your risk management of this capital. If you want to make $100 from the $1 trade you will need to get 100 pips onside. You then have to decide how much you are willing to lose to make this $100.

Remember every pip the market goes against you (offside) you will owe. So if you want to make $100 then you will probably not want to risk more than a 100 pips ($100) offside position.

This is a 2% risk of your capital on this one single trade. This is acceptable risk.

At this level of deposit your risk is limited but so is your potential profit

At this tier and level of trading there will be plenty of opportunity to learn. Once you have my structure you will find it much easier to find out what products suit your trading style and expectations.

With the $5,000 (USD) level of deposit you are giving yourself every chance of starting to approach the markets in the correct way. Access to my material will help you move on to the next tiers and to enhance your trading potential.